Electrica SA logged 197 million-euro net profit last year, a record value for a company still fully owned by the state. Electrica is a top five company in Romania in terms of turnover.
The preliminary results revealed by the company show last year''s profit is nearly 2.5 times larger than in 2004. The turnover was slightly down, by approximately 5% to 2.03 billion euros.
"These results are mainly due to the increase in profitability of the Electrica branches through price increases, as well as revenues the company collected from the privatisation of the four branches," corporate sources told ZIARUL FINANCIAR.
Last year saw the completion of privatisation in the electricity supply and distribution sector.
Electrica sold 24.62% in Electrica Banat and Electrica Dobrogea to Italian utility giant Enel for some 35 million euros, concluding the deal completed last spring. The Italians paid another 15.6 million euros under the procedure to adjust the buying price of the two privatised branches. On the other hand, Electrica''s revenues were helped by privatisation contracts for Electrica Oltenia and Electrica Moldova (currently E.ON Moldova), which were acquired by the Czechs at CEZ and by the Germans at E.ON. Upon the completion of the two transactions, Electrica collected another 78 million euros in addition to the amounts derived from the adjustment of the acquisition price.
"The profits made last year will be used to cover the losses at branch level," the quoted sources added. "The only branch to get dividends is Electrica Muntenia Sud, the only electricity distributor that posted profit," the same sources specified.
Electrica Muntenia Sud, nicknamed Electrica''s crown jewel posted 24.7 million-euro (89.59 million RON) net profit in 2005, after having finished the previous year with 8.3 million-euro losses, under the international financial reporting standards (IFRS).
Electrica Muntenia Sud made 391.6 million-euro turnover last year, an increase of 40% on the previous year. The company supplies power to the Capital and the nearby counties and had 2,094 employees at the end of last year. 2005 was a very profitable year for the companies in Romania, which posted a steady profit growth.
Petrom, the largest company in Romania, posted 391 million-euro profit and will be granting 212 million euros in dividends to shareholders. Austrian group OMV will get half of the dividends because of the stake it owns.
BCR, Romania''s largest bank made 202 million-euro profit last year and will be disbursing 103 million euros as dividends to its shareholders. This will be the last time BCR will have granted dividends as it is being privatised and will become the property of the Austrians at Erste Bank.
Gross profits logged throughout the entire country by all the companies operating in Romania amounted to 11.3 billion euros compared with 6.3 billion euros in 2004. Gross profits in 2003 stood at 4.6bn euros and reached 3.8 billion euros in 2002. Estimates point to 19.2 billion euros for this year. roxana.petrescu@zf.ro
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